Idemnity fee

arno65

What is this new addition to the cost of motoring? Scanning a few second hand car dealers websites in Bristol I notice a few of them, normally the big warehouse types, but also some others have started charging an idemnity fee of £99 in addition to the sale price. I know that auction centres do this but a dealer? It is to cover you in case the car is stolen, subject to a HP agreement, faulty and other things. I always thought you paid a dealer inflated prices to avoid any problems and that they had by law to provide a 6 month warranty. In fact the law was changed to put the onus on the seller and not the buyer. If it is not an idemnity fee it is called am admin fee. I suppose there are people who will pay this without a thought but not me. I am going to call on one of these dealers tomorrow to ask a few questions. Is this against the law?

worried_jim

Just tell them the price you want to pay and walk away, if they want your business they will say yes. Simples.

Wouldn't bother calling any tomorrow though.

shaun_from_Africa

arno65 wrote: »

It is to cover you in case the car is stolen, subject to a HP agreement, faulty and other things. I always thought you paid a dealer inflated prices to avoid any problems and that they had by law to provide a 6 month warranty.

The is no obligation by any dealer to provide any sort of warranty.
If the vehicle in question has been stolen or is faulty then you claim from the garage and if it turns out that it still has HP on it, you are still legally entitled to keep the car and have valid title to it provided that you bought it in good faith with no knowledge or suspicion of the outstanding finance.

AdrianC

shaun_from_Africa wrote: »

The is no obligation by any dealer to provide any sort of warranty.

As the man says.

arno65 wrote: »

In fact the law was changed to put the onus on the seller and not the buyer

The legislation that covers you is the Sale of Goods Act 1979 - that's how recently the law hasn't been changed.

Is this against the law?

No.

scooby088

An indemnity fee is there to protect the buyer or it supposed to be, i work in a car auction and it should protect if the car comes back as still got finance on it or has any defect. I have never heard of a dealer charging for such a service, but any checks like hpi should have already been done i know at our auction those checks are already carried out otherwise the cars wouldnt go through the sale. Maybe stay away from the dealer or negotiate the fee off the final price.

bod1467

It's there to give them an easy £99 extra from the unwary, and an easy "discount" to anyone who questions it.

poppasmurf_bewdley

bod1467 wrote: »

It's there to give them an easy £99 extra from the unwary, and an easy "discount" to anyone who questions it.

Precisely.

And personally, I wouldn't touch any dealer who asked for such a fee with the proverbial bargepole.